Pag-IBIG Housing Loan Calculator – How Much Can You Afford?

September 11, 2024

Pag-ibig housing loan calculator

Buying a home is a major milestone, and we want to make sure you feel confident and informed throughout the process. To help you determine what you can realistically afford, there are affordability calculators designed to estimate your housing loan eligibility based on your income. These tools show how much you can afford based on your current income and preferred loan terms, offering a clearer understanding of the financial aspects of homeownership. They also ensure you don’t overstretch your budget. Pag-IBIG Fund, one of the leading housing loan providers in the Philippines, makes homeownership accessible to millions of Filipinos, especially those seeking affordable options. With competitive interest rates and flexible payment terms, the Pag-IBIG Housing Loan enables you to purchase your dream home without straining your finances.

Know Your Income: Gross vs. Net Monthly Income

Before you jump into the affordability calculator, it’s important to be clear about the difference between your gross income and net income.

Gross Monthly Income

This is the total compensation you earn each month before taxes and other deductions. It includes your basic salary, and if you have fixed allowances. For example, your basic salary is PHP 25,000 and you have a PHP 5,000 fixed allowance, your gross monthly income is PHP 30,000.

Net Monthly Income

Your net monthly income, on the other hand, is the amount left after deductions, including taxes, government contributions (such as SSS, Pag-IBIG, and PhilHealth), and loan payments (if any). This is the actual money you have to spend or save each month.

For purposes of calculating your housing affordability, the focus is usually on gross income because it provides a clearer snapshot of your total earning capacity. However, it’s still important to know both figures so you can accurately assess your financial flexibility when it comes to managing a monthly mortgage payment.

How to Use the Housing Loan Affordability Calculator

There are many housing loan calculators that you can find online. But here at Pinnacle Homes, we simplified it further so you easily gauge the property you can afford. Here’s how you can use the calculator step by step:

Input Your Gross Monthly Income

As mentioned earlier, your gross monthly income is your total earnings before deductions. Enter this amount into the calculator. If married, add spouse’s gross monthly income.

View Your Results

Once you’ve filled in all the necessary details, the tool will display an estimate of the property price you can afford, the loanable amount you can borrow from Pag-IBIG Fund, and what your monthly amortization will look like (which includes insurance).

Example:

If your Gross Monthly Income is PHP 30,000, you can avail a house and lot worth 2,006,268.65, with an estimated loanable amount thru Pag-IBIG Fund 1,705,328.35, and Pag-IBIG monthly amortization of P11,139.5.

With these numbers, you can afford a 2-Storey Townhouse in Hiraya Homes. Check sample computation (As of August 2024):

Total Contract Price: PHP 1,622,144
Reservation Fee: PHP 10,000
Equity/Down Payment (Payable in 18 months): 15% of the total contract price = PHP 243,321.60
Pag-IBIG Loan Amount: PHP 1,378,822.40 (remaining balance after down payment)
Estimated Pag-IBIG Monthly Amortization (30 years): PHP 8,489.65

Making Your Dream Home a Reality

Buying a home doesn’t have to be complicated and overwhelming. With helpful tools like the Pag-IBIG Housing Loan Affordability Calculator, you can take more confident steps toward homeownership and make make informed decisions for your future.

If you’re ready to explore affordable house and lot options, visit https://pinnaclehomes.ph/properties/ for more information and to find your perfect home. Or feel free to reach-out to us so we can assist you in your homebuying journey.